I am not seeing any shortage of buyers willing to purchase homes that are in need of renovations. We have been doing FHA 203K loan for years. Most of the time, buying a property that needs renovation can be purchased at below market prices.
What becomes frustrating, some Realtors don’t understand the process. I recently had a realtor recommend to my client, that they shouldn’t do a home inspection. The reason given was, the purchase agreement indicated that the house was being sold “as is.” It also was subject to an FHA 203K loan. After a short conversation, I explained it wasn’t the best way to represent the buyer.
I never have a problem with a sophisticated buyer having a willingness to purchase without inspections, but never a homebuyer that is buying for their own use, especially for a first time home buyer.
It is extremely important for a homebuyer to be working with a knowledgeable realtor when looking for a home that needs work.
By: Amilda Dymi